Sensex extends losing streak; bears target midcaps

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Key indices fell sixth day in a row Friday, shedding roughly 4 percent on a week-on-week. The mood in global markets has become edgy after the developments in Cyprus earlier this week, and back home foreign fund flows have slowed down considerably this month.

Sensex extends losing streak; bears target midcaps

Key indices fell sixth day in a row Friday, shedding roughly 4 percent on a week-on-week. The mood in global markets has become edgy after the developments in Cyprus earlier this week, and back home foreign fund flows have slowed down considerably this month.

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Sensex extends losing streak; bears target midcaps

Key indices fell sixth day in a row Friday, shedding roughly 4 percent on a week-on-week. The mood in global markets has become edgy after the developments in Cyprus earlier this week, and back home foreign fund flows have slowed down considerably this month.

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Key indices fell sixth day in a row Friday, shedding roughly 4 percent on a week-on-week. The mood in global markets has become edgy after the developments in Cyprus earlier this week, and back home foreign fund flows have slowed down considerably this month.

The Sensex closed at 18735.60, down 57 points over the previous close, and the Nifty shed 7 points to close at 5651.

With today’s losses, the Sensex has shed 835 points in the last six sessions, and the Nifty, 258 points. The near 4 percent weekly decline is the worst in about 15 months.

Brokers expect more volatility next week, with the market open for just three trading sessions and the F&O expiry due on Thursday.

Realty and state-owned banks have been the worst performers in a week in which midcap and small cap shares took a renewed pounding.

Brokers say slowing FII flows has been a key reason for the slide. In December, January and February, FIIs net purchased an average of Rs 22,000 crore worth of shares every month. In March so far, net FII purchases in equities has been less than Rs 8500 crore.

The RBI cut the benchmark repo rate by 25 basis points earlier this week, but made it clear that it had limited room for further interest rate cuts. Most analysts and economists do not expect banks to cut interest rates unless consumer price inflation shows signs of easing.

The benchmark index Nifty hits fresh 2013 low of 5631.8 in the late afternoon trade on Friday. The Sensex is all set for one of its biggest weekly loss of the calendar year 2013. The Nifty is trading perilously close to 200 DMA of 5615 and one can expect some support around that level.

It has been a choppy session for the market in the first half of trade. The political uncertainty after DMK’s pullout is keeping traders cautious. Selective buying was seen in auto and banking stocks. Realty stocks are under pressure.

The Sensex is trying to consolidate around 18,800, but there seems to be little buying support. But no respite for midcaps which continue to be the target of bears. Traders’ favourite stocks like Delta Corp, Core Education, Geometric, HDIL are down 3-5% in morning trade.

Sluggish start to the session, with the Sensex and Nifty choppy in early trade. The indices have been falling for four consecutive sessions, and buyers are still apprehensive in the absence of any positive fundamental trigger.